The ending merchandise inventory for the current accounting period is overstated by $3,500. What will be the effect of this error?
A) The net income for the current accounting period will be overstated by $3,500.
B) The cost of goods sold for the current accounting period will be overstated by $3,500.
C) The ending merchandise inventory for the next accounting period will be overstated by $3,500.
D) The cost of goods sold for the next accounting period will be understated by $3,500.
A
You might also like to view...
According to Backer, Spielvogel & Bates Worldwide's Target Scan, Adapters are older people who maintain their values while keeping open minds when faced with change
Indicate whether the statement is true or false
Which of the following statements is true about Ballot Measure 37?
A) It was passed in the state of Florida. B) It applies to property owners of all the states in the country. C) It requires the government to either exempt the property from the rules or compensate for losses. D) It provides compensation to property owners only after a 50 percent reduction in the property's value is seen due to new regulations.